Setting the scene for future MVNO growth

Over the past 15 years, mobile virtual network operators (MVNOs) have helped stimulate competition in the mobile market, launching innovative tariffs and services and attracting niche consumer segments at a lower cost than mobile network operators (MNOs).

But the landscape has changed; the innovative offers that once made the MVNOs successful are now commonplace in most developed economies. Moreover, MVNOs’ margins are thin and in most cases stuck in negative territory.

GSMA Intelligence research shows that half of all mobile virtual network operators (MVNOs) worldwide are likely to be challenged by changing industry dynamics. MVNOs’ survival in saturated developed markets now depends on their ability to adapt to industry trends, leverage innovation (in technology, billing solutions and tariffs) and target niche or underserved consumer segments.

With both short- and long-term industry headwinds buffeting the landscape, some MVNOs are better positioned than others in the fight for survival. This latest report from GSMA Intelligence highlights the likely casualties and examines how new MVNOs are adapting their business models and differentiators in the quest for future growth.